Sequoia secures $1.4b for two new funds in India, Southeast Asia

Sequoia Capital India just announced that its limited partners have committed US$1.35 billion for its two new funds – a US$525 million venture fund and an US$825 million growth fund – for opportunities across India and Southeast Asia.

Sequoia Capital managing director Shailendra J Singh / Photo credit: Sequoia Capital

“The combined GDP of India and Southeast Asia is expected to cross US$14 trillion, and the number of mobile internet users will likely cross 1.5 billion by 2030. This region will become home to a number of massive technology companies during the next decade,” Shailendra J Singh, managing director at Sequoia Capital, said in a blog post.

The development comes as businesses globally deal with the negative economic effects of Covid-19. Earlier this year, the VC firm dubbed the pandemic “the black swan of 2020,” urging its portfolio companies to brace for turbulence.

However, Sequoia believes the pandemic has “catalyzed a massive change” and “a new bull cycle for tech startups could soon be on its way.”

“Costs have been trimmed, product roadmaps have been prioritized, new revenue levers have been unlocked, and wonderful new talent has been hired. The leadership teams inside our startups are more aligned, focused, and determined than ever before,” Singh wrote.

He also emphasized the need for profitable startups that can compete globally on quality, pursue original ideas, and demonstrate authentic leadership.

Sequoia has invested across the region for over 14 years. In 2018, it closed its sixth fund at US$685 million, making over 200 investments at the time.

Its portfolio companies include ride-hailing giant Gojek, ecommerce platform Tokopedia, online travel company Traveloka, sports media firm One Championship, hospitality firm Oyo, and edtech startup Byju’s, among others.

The company also runs a scale-up program called Surge to provide further support for early-stage startups in India and Southeast Asia.